Bitcoin price fails to sustain bounce
2 min read- The price of the flagship cryptocurrency showed an upward trend in the first week of March.
- The bullish season looks likely as per a technical analysis of chart patterns.
- Major support levels are spotted at the $49,200-$45,500 intervals.
Bitcoin price almost made a comeback to the previous high but still looks unconvincing.
After setting what appeared to be the early signs of a strong bullish run, Bitcoin price took another fall back into the initial bearish zone, as per the interpretation of the candlestick indicator. However, starting this week, two things are expected: a return back to its highest peak level this year, or its continuous struggle to maintain current support levels. Either of the above possible outcomes should be reliable indicators for tracking the price of Bitcoin in the long-term.
Bitcoin Price looks stronger on the bullish side
Two weeks back, Bitcoin price suffered a major dip, resulting in a bearish candlestick pattern, probably influenced by the increasing yields in US Treasury Bills. Then just last week, BTC rebounded considerably, after crossing the $50k mark. But even though it failed to sustain the recovery, the MACD (moving average convergence/divergence) indicator is rising, with the RSI (relative strength index) taking the shape of a bullish divergence. Typically, those are good signs, which historically, point to the chances of an upside movement.
Bitcoin’s price bearish pattern
Meanwhile, on the Stochastic Oscillator, the bearish momentum has generally slowed down, a striking similarity with the 2017 chart analysis shortly before the bull run started that year. Compare the current 2021 charts patterns with that of 2017 at tradingview website. Therefore, even if BTC dips further, there are still strong reasons to be optimistic for a future climb in the price.
From February 28, Bitcoin price has consistently maintained a support area above the $44,500 level, on the daily charts. However, on the bi-hourly charts, it is facing a 0.618 Fibonacci retracement around $53,000. That, however, intersects with the other support level of $49,200. So long the price of Bitcoin follows that pattern, then it should have little difficulty crossing the 0.618 Fibonacci resistance. Overall, that points to the long and midterm rebound of Bitcoin price.
